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This model suggests that as domestic interest rates rise, capital outflow reduces because investors have better opportunity in the home country.
If interest rates fall, investors have no longer profitable opportunity in home country, therefore, they will move their funds abroad where they can earn more.
However, the model has limitation depending on the size an nature of the economy.
So we can see that flow of capital shifts towards negative as interest rates fall and shifts towards positive as they rise showing that data of Pakistan afirms this theory.

YearReal_Interest_RateNet_Flow_of_Capital
2004-0.45638-1062000000.00000
20051.91092-2156000000.00000
2006-6.77408-4164000000.00000
20074.18927-5492000000.00000
2008-0.23689-5389000000.00000
2009-5.07930-2267000000.00000
20102.87979-1975000000.00000
2011-4.36750-1264000000.00000
20127.12531-782000000.00000
20134.69297-1121000000.00000
20144.02046-1746000000.00000
20155.80690-1596000000.00000
20168.16445-2272000000.00000
20174.04755-2763000000.00000
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